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[House Document 113-160]
[From the U.S. Government Publishing Office]

113th Congress, 2d Session - - - - - - - - - - - - House Document 113-160

 
 THE BUDGET PROGRAM REVISIONS FOR THE COMMODITY CREDIT CORPORATION FOR 
                                FY 2015

                               __________

                             COMMUNICATION

                                  from

                   THE PRESIDENT OF THE UNITED STATES

                              transmitting

 THE BUDGET PROGRAM REVISIONS FOR THE COMMODITY CREDIT CORPORATION FOR 
                                FY 2015

  November 12, 2014.--Referred to the Committee on Appropriations and 
                         ordered to be printed
                                           The White House,
                                      Washington, October 14, 2014.
Hon. John Boehner,
Speaker of the House of Representatives,
Washington, DC.
    Dear Mr. Speaker: Consistent with section 5 of the 
Commodity Credit Corporation Charter Act (15 U.S.C. 714c) and 
the Government Corporation Control Act (31 U.S.C. Chapter 91), 
I hereby notify the Congress of a budget program revision for 
the Commodity Credit Corporation (CCC) for Fiscal Year (FY) 
2015. The revisions total up to $300 million and reflect the 
payments that the United States is making, pursuant to a 
Memorandum of Understanding between the United States and 
Brazil of October 1, 2014, in connection with termination of 
the World Trade Organization (WTO) ``Cotton dispute'' (WT/
DS267) brought by Brazil with respect to which the WTO made 
adverse rulings regarding certain United States cotton programs 
and export credit guarantees (GSM-102).
    For FY 2015, the budget estimates for CCC, as amended by 
the Mid-Session Review, of $6.074 billion in net outlays would 
be increased by $300 million, to $6.374 billion.
    The details of this action are set forth in the enclosed 
letter from the Director of the Office of Management and 
Budget. I concur with the Director's comments and observations.
            Sincerely,
                                                      Barack Obama.
    Enclosure.
                 Executive Office of the President,
                            Office of Management and Budget
                                  Washington, DC, October 14, 2014.
The President,
The White House,
Washington, DC.
    Dear Mr. President: Submitted for your consideration is a 
request for a Fiscal Year (FY) 2015 budget revision totaling 
$300 million that reflects the payments that the United States 
is required to make, pursuant to a Memorandum of Understanding 
(MOU) between the United States and Brazil of October 1 2014, 
in connection with termination of the World Trade Organization 
(WTO) ``Cotton dispute'' brought by Brazil with respect to 
which the WTO made adverse rulings regarding certain United 
States cotton programs and export credit guarantees (GSM-102).
    This request would constitute an official revision of the 
budget program for the Commodity Credit Corporation (CCC) for 
FY 2015. For FY 2015, the budget estimates for CCC of $6.074 
billion in net outlays would be increased by $300 million, to 
$6.374 billion.
    These funds will be used for the United States to make a 
one-time payment to the Brazilian Cotton Institute in 
accordance with the MOU. The MOU is an agreement pursuant to 
which Brazil and the United States memorialize negotiated 
resolution of the Cotton dispute and the adverse WTO rulings 
regarding certain United States cotton programs and GSM-102 
export credit guarantees. The agreement is in the best interest 
of both the United States and Brazil. Under the agreement, the 
United States avoids the imposition of countermeasures against 
U.S. trade, including U.S. exports and, potentially, 
intellectual property rights. In exchange, the United States 
agreed with Brazil to pay $300 million to the Brazilian Cotton 
Institute.
    In conclusion, Section 5 of the CCC Charter Act sets forth 
specific powers of the corporation in fulfillment of its 
purposes. Among these specific powers are those set forth in 
section 5(f): ``Export, or cause to be exported, or aid in the 
development of foreign markets for, agricultural commodities 
(other than tobacco)(including fish and fish products, without 
regard to whether such fish are harvested in aquacultural 
operations).'' In light of the eventual likelihood of 
imposition of retaliatory tariffs against myriad U.S. 
agricultural commodities, in the aggregate potentially cutting 
off or greatly impeding American agricultural exports into the 
Brazilian market worth hundreds of millions of dollars annually 
for an indefinite period of years, the proposed expenditure of 
CCC funds for these purposes and in the manner contemplated 
would serve to cause to be exported U.S. agricultural 
commodities into the Brazilian market that would, in large 
measure, not occur but for the exercise of such power. Such 
expenditure of funds therefore is authorized under section 5(1) 
of the CCC Charter Act.
    I have carefully reviewed this proposal and am satisfied 
that it is necessary at this time. Therefore, I join the 
Secretary of Agriculture and the United States Trade 
Representative in recommending that you approve the budget 
program revision by signing the enclosed letter to the Speaker 
of the House of Representatives. No further congressional 
action will be required.
            Sincerely,
                                           Shaun Donovan, Director.
    Enclosure.
   Notification Required by the Commodity Credit Corporation and the 
                   Government Corporation Control Act

    In accordance with Section 5 of the Commodity Credit 
Corporation Act (15 U.S.C. 714c) and the Government Corporation 
Control Act (31 U.S.C., Chapter 91), the President has revised 
the budget program for the Commodity Credit Corporation (CCC) 
for FY 2015. For FY 2015, the budget estimates for CCC of 
$6.074 billion in net outlays would be increased by $300 
million, to $6.374 billion.
    These funds will be used for the United States to make a 
one-time payment to the Brazilian Cotton Institute in 
accordance with the Memorandum of Understanding (MOU) that the 
Government of the United States and the Government of Brazil 
entered into on October 1, 2014, as a negotiated resolution to 
the World Trade Organization (WTO) dispute between Brazil and 
the United States entitled United States--Subsidies on Upland 
Cotton (WT/DS 267).
    The agreement is in the best interest of both the United 
States and Brazil. As part of the overall agreement between the 
parties, Brazil agrees to terminate the WTO dispute and the 
attendant right to impose countermeasures against U.S. 
agricultural exports upon satisfaction of certain conditions. 
One of these conditions is payment by the United States of $300 
million into the same Brazilian fund to which previous payments 
were made.
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